While net profit dipped to $298 million from $385 million a year ago, adjusted per-share earnings reached 90 cents, comfortably beating the 86-cent consensus forecast from FactSet analysts. This performance was largely fueled by an acceleration in on-premise subscription revenues, particularly within the public sector.
In section Market Quotes
ServiceNow Revenue Climbs as Federal Contracts Drive Growth
A surge in U.S. federal government demand pushed ServiceNow’s second-quarter revenue to $3.99 billion, a 24% increase that outpaced Wall Street expectations. The software firm secured 123 major transactions worth over $1 million each, signaling a 40% year-over-year jump in high-value contract activity that bolstered the company’s subscription outlook.
Following these results, the company raised the floor of its full-year subscription sales guidance to a range between $15.76 billion and $15.78 billion. Despite the positive momentum, the firm’s outlook for the third quarter remains conservative, with management projecting subscription revenue of $3.98 billion—falling short of the $4.01 billion estimate currently held by analysts.
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